BANKING & INSURANCESantander agrees A&L takeoverSpanish Abbey National owner Santander has agreed a £1.3 billion takeover of Alliance & Leicester. Shares in the embattled lender soared by 52.8 per cent yesterday
as investors hoped for a higher bid to trump the move made by the Spanish bank. The Spanish offer is at a 44.6 per cent premium to the lender's closing share price on Friday but represents barely a quarter of its price just a year ago. A&L chief executive David Bennett commented: "The board has to look forward and we have to prove certainty in uncertain markets. These are turbulent times and when we look forward, it's not clear when that turbulence ends or reduces." Head of UK equities at Standard Life Investments, David Cumming added: "This is a gorgeous deal for Banco Santander. They are acquiring Alliance and Leicester on giveaway terms. I would be amazed if no-one else counters with a higher offer in the next few months."
(The Herald) Read all today's banking news from scotsman.comECONOMYPrice surge dashes base rate cut hopesNew figures revealing the fastest surge in UK producer prices in 22 years appear to have dashed all hopes of a cut in interest rates. The new data from the Office of National Statistics revealed that factory gate inflation has hit double digits for the first time since comparable records began. UK economist at Global Insight, Howard Archer commented: "Ongoing elevated inflationary pressures continue to constrain the Bank of England's ability to deliver any time soon the interest rate cuts that the economy so badly needs." Vicky Redwood, UK economist at Capital Economics added: "Another month, another awful set of UK producer prices figures. Accordingly, these data underline why the MPC is unlikely to cut interest rates in the next couple of months, even though the economy is weakening fast."
(The Herald) Read all today's economics news from scotsman.comMANAGEMENTSmall businesses should look to joblessHead of the CBI's small business council Russell Griggs has urged small business owners to take on more unemployed people. The Scottish businessman, who is chairman of the private training provider A4e, claims that many companies have benefited from the New Deal scheme introduced in 1998 and that many more should follow their lead. He said: "It's not something we talk about regularly around the dinner table. It's not one of the top-ten issues. But everybody says they have skill shortages. If your labour market is changing and becoming more diverse – from immigration or from age – then you need to look at your recruitment policies but also at whether you need to change the culture within your workplace." He added: "I think New Deal has been a success because governments around the world are asking companies to take the New Deal model and put it into their country. That's what we've done in Israel, Germany, Australia and South Africa. I think the move to Flexible New Deal is the next step on, taking people off state benefits. More and more big employers understand they have a 'corporate social responsibility' and so they want to take a percentage of their workforce from the unemployment register."
(The Scotsman) Read all today's management news from scotsman.comMEDIA & LEISURETimeshare owners ordered to pay upMacdonald hotels, Scotland's largest independent hotel chain, has ordered 3000 owners of timeshare properties to pay a disputed utilities bill or be cut off. The group has told the owners of the Loch Rannoch development they have a week to pay the disputed £450,000 bill or the power and water to the exclusive lodge complex will be cut. The dispute arose after the members committee wrested management control of the complex away from Macdonald Hotels, however, the hotel chain continued to supply utilities to the site from July 2003 until May 2008 when it presented a bill for £451,352. The management committee eventually agreed to pay £177,819 on the understanding it was accepted as payment in full, something Macdonald did not accept. Committee member and director of Timeshare Management Services which now manages the development, Edward Monks said: "We paid for the electricity but we paid it under the condition they accepted the cheque as the settlement of the liability between us and them. They owe the club some management fees but they refuse to accept that condition."
(The Scotsman) Read all today's media and leisure news from scotsman.comRETAILTesco lands in ShetlandTesco has opened a store in Lerwick, chalking off one of the few remaining UK postal code districts where it had yet to establish a presence. Shetlanders have been told they can expect mainland prices in the store but concerns have been raised that smaller shop owners would be badly hit by the presence of the supermarket giant.
(BBC Scotland Online) Read all today's retail news from scotsman.comTRANSPORTFerrovial complete refinance plansThe Spanish owner of the UK's major airports has been given the go ahead for a refinancing plan which could see hefty reinvestment. Ferrovial includes Glasgow, Edinburgh and Aberdeen in its portfolio and has now secured support for a $9.5 billion bond exchange which will see the three Scottish terminals and Southampton hived off into a separate entity.
(The Herald)New train order to add seat to Scottish routesA new £180 million fleet of electric trains is to be added to the Scottish rail network by the end of 2010. Finance secretary John Swinney announced the deal with Siemens to supply 130 new carriages, providing 9000 more seats on the Scottish network. The news trains are expected to operate mainly on the west coast and on the planned Glasgow Airport rail link. The finance secretary commented: "If we want to encourage more Scots to switch from their cars to public transport, we need to continue to invest in our rail network." First Scotrail managing director Mary Grant added: "This is the biggest electric trains order in Scotland for a decade. It will result in extra trains, and services, at a time when more and more people are choosing rail as their preferred means of travel."
(BBC Scotland Online) Read all today's transport news from scotsman.comPROPERTYSt Modwen hit by building downturnSt Modwen Properties, the regeneration specialists, have posted half year losses of £20 million as the housing sector continues to suffer under the increasing credit difficulties. The group which holds a portfolio of 5000 developable acres and 18 town centre schemes in England announced it would not attempt to sell any of its residential land until the market gained a measure of stability. The downturn has seen St Modwen write off some £37.7 million from the value of its residential sites as well as £16.9 million from its commercial portfolio. A company statement said: "We are reporting on what has been the most difficult period for the property industry since 1990." And added: "This means that, for residential land, there is currently no genuine market, as the major housebuilders are unwilling to invest in land until they can see the way ahead more clearly."
(The Scotsman) Read all today's property news from scotsman.com
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